Blockbuster goes into administration

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DVD rental company Blockbuster has become the latest casualty of the high street after administrators were called in.

Administrators said the firm has been struggling up against internet competitors and the growing popularity of digital streaming of movies and games.

Today’s announcement means that employees at the Bridlington store, on Prospect Street are now facing an uncertain future as attempts are made to sell all or parts of the business as a going concern.

The company has its headquarters in Uxbridge, with 528 stores nationwide employing 4,190 staff.

Lee Manning, Matthew David Smith and Neville Kahn, partners at the business advisory firm Deloitte have been appointed Joint Administrators to Blockbuster Entertainment Limited and Blockbuster GB Limited.

Lee Manning, Joint Administrator and Partner in Deloitte’s Restructuring Services practice, said: “In recent years Blockbuster has faced increased competition from, internet based providers along with the shift to digital streaming of movies and games.

“We are working closely with suppliers and employees to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors.

“The core of the business is still profitable and we will continue to trade as normal in both retail and rental whilst we seek a buyer for all or parts of the business as a going concern.

“During this time gift cards and credit acquired through Blockbuster’s trade-in scheme will be honoured towards the purchase of goods.”